Regardless of the method used to comply with IMO2020 regulations, the increased costs will be a hard pill for the industry to swallow. The widely discussed options of switching to marine gasoil, investment in exhaust scrubbers to enable the continued use of HSFO or switching to LNG will all incur significant costs to the carrier.
Given these costs cannot be passed on entirely to shippers, large cost reductions will need to be found elsewhere. The adoption of innovative technologies to optimize asset utilisation, reduce operational costs and identify hitherto hidden opportunities will all increase the organisation’s competitive position in a sector where the right decision made at the right time will have major economic consequences.
There are plenty of opportunities to do this through increasing the use of software robots, to bring round the clock operational improvements in productivity and accuracy of repetitive; increasing the number of smart devices through the integration of IoT sensors to harvest data on operations on then use these in machine learning tools and data science algorithms.
“Historical data does not give an awful lot of confidence that the carriers will be able to pass on the extra fuel costs,”